November 30 – (Renewables Now) – The Danish supplier (CPH:ORSTED) has agreed to supply electricity from 500 MW of wind and solar farms in Texas for the operation of the U.S. oil and gas group ExxonMobil Corp (NYSE:XOM) in the Perm Basin. According to Bloomberg, Exxon`s bid application ended on June 8 and required 12-, 15- or 20-year contracts. It was not known what the electricity would be used for, or whether it would go to Exxon. The company declined to comment on Greentech Media, but said it was “continually evaluating opportunities to provide electricity to our facilities.” “Our agreement with Global Clean Energy builds on ExxonMobil`s long-standing efforts to develop and deliver products that help meet the company`s energy needs while reducing environmental impact,” said Bryan Milton, President of ExxonMobil Fuels and Lubricants Company. “Chemically like petroleum-based diesel, renewable diesel can be easily blended for use in engines that are now on the market.” Tags: usa, us, ppa, exxonmobil, corporate ppas, big oil ExxonMobil told Hart Energy that the 12-year power-purchase agreements with Lincoln Clean Energy for electricity generated by wind and solar farms will serve its operations in Texas. The mating of wind and solar contracts is “a case study of where onshore renewable energy goes.” He added that the dual-technology approach had maximized the availability of electricity. Join GTM at the next Power – Renewables Summit! We will talk about how decarbonization, sector electrification and regulatory developments will change the markets of power over the next 10 to 20 years. We have already confirmed executives with FERC, Exelon, ERCOT, PJM, APS, Microsoft, Dell, CPS Energy, NRG, CohnReznick, Los Angeles Department of Water and Power and many more. Find out more here. But if the price of renewable energy falls, the company can see the value of wind or solar consumption, even if it refuses to produce this type of energy. Texas is the largest U.S.
wind-producing state, with sometimes negative electricity prices on windy days, and solar electricity is cheaper than coal in many parts of the world. Several oil and gas players have turned to renewable energy, while the world is turning to cleaner energy sources. Some incorporate wind and solar installations into their portfolios, while others use these energy sources to reduce emissions or add new energy sources to their operations, especially in regions such as Perm, where increasing oil production pollutes the electricity grid. ExxonMobil has signed contracts with Lincoln Clean Energy to purchase electricity for solar and wind power. (Source: Franz Metelec/Shutterstock.com) According to the information provided, the Danish city has entered into agreements with ExxonMobil Corp. (NYSE: XOM) for the supply of 500 megawatt (MW) wind and solar power in the Perm Basin. The Perm`s Delaware Basin consumed the equivalent of 350 MW this summer, about as many as 280,000 U.S. homes, according to a Bloomberg report. The amount was three times higher than in 2015 and demand is expected to continue to increase as operators pump more. If Exxon uses the electricity itself, it would be owned by several oil and gas companies that source clean energy for the operation. “If we assume they use it to carry out their own operations, this kind of practice becomes the norm,” Smith said. “Companies are seeing lower energy costs, or at least protection against rising energy prices, to be more competitive.” Exxon declined to comment.
